417.00/509

The Chargé in Nicaragua ( Dawson ) to the Secretary of State

No. 468

Sir: Referring to the Legation’s despatch No. 465 of September 12, 1934,96 and previous despatches concerning the awards of the Nicaraguan Claims Commission and the manner in which these awards will be paid, I have the honor to report that Mr. Hans Sitarz, General Manager of the National Bank of Nicaragua, this morning showed me a telegram he had received yesterday from the Board of Directors of the Bank, meeting in New York, which read: “Loan of C$950,000 approved. Details by air mail.”

[Page 575]

Mr. Sitarz said that C$700,000 of the loan would be used for payment of the awards of the Claims Commission which have not yet been met and that the remaining C$250,000 would be at the disposal of the Nicaraguan Government for “other expenses.” He stated that, after negotiations between the Government and the Bank, it had been agreed that the payment of awards should be made by the Ministry of Finance instead of by the Bank, as had originally been desired by the Board of Directors, but that disbursements would be checked by the Bank against a list of awards to be given to it by the Claims Commission.

Respectfully yours,

Allan Dawson
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